"Formula for paying the crop would raise the price of rice" – Sectors – Economy

Find the validation of El Cazamentiras at the end of the news.

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Economics

July 10, 2018, 9:58 pm

During the first month of entry into force of the resolution establishing the methodology for setting the basic price of paddy green rice – which is for the moment a project open to comments – the price of the food key in the family basket would increase in a visible manner This was noted by the House Andi Induarroz, at the time a letter was sent to the Minister of Finance, Mauricio Cárdenas, requesting a review of the document before its formal promulgation.

Induarroz states that the content of this regulation "has not been discussed with the National Rice Council, advisory body of sectoral policy". And with this text, the price increase in the first month (August) would be 16.8% in the city center; 22.7 in the Llano area; from 6.8 to Bajo Cauca; 20.1 percent on the north coast and 23.2 percent in Santander.

"An artificial increase in the price of raw material, which accounts for 90 percent of the cost of white rice, affects the final price In this way, consumption decreases, thus affecting the agents of the chain, including producers "

As explained by Silverio Gómez, director of Induarroz, the resolution does not take into account the reality of the market, and farmers and manufacturers have serious concerns about the components technical and operational involved in the standard. "In harvest period, it is estimated that the industry buys 60% of domestic production in three months, it is logistically impossible to comply with this requirement and to 39; other operational requirements. "

Millers has advanced" potential legal issues "about the alteration of market conditions and competition." They add that "it is cl air the impact that will have (the resolution) on prices to the end consumer.

ECONOMY